Anglo-Dutch publishing group Reed Elsevier today posted increased pre-tax profits for 2003 but said it expects growth to slow in the coming year as a continued economic downturn takes its toll.
Pre-tax profits were up 9%, from £927 million to £1.0 billion. Reed said its growth would have reached 10% if adjusted at full year currency rates for 2002, acheiving its goal of double-digit growth for the third consecutive year, and topping the billion mark for the first time.
A statement from the chairman Morris Tabaksblat and chief executive Crispin Davis said: “We are pleased to report another year of good progress in executing our growth strategy and delivery of a strong financial result for 2003…acheived against a background of challenging market conditions, with each of our markets affected by the late cycle effects of the recent global economic slowdown.”
Reed Elsevier publishes business, scientific and legal books, as well as magazines and journals. It forecasts mid to high single digit adjusted earnings growth for 2004, but it expects to return to double digit growth in 2005 and beyond as markets recover.
Turnover was down slightly at £4.9 billion, compared to £5.0 billion in 2002, but its science and medical and legal divisions performed well. The education and business markets were soft however.
In the UK Reed Business Information saw revenues fall 6% compared to the previous year. Display and recruitment ad markets posted lower revenues but online sales were up.
The results were in line with the company’s forecasts (see Reed Cautious On 2004 Prospects) but ahead of some analysts’ expectations.
Shares in the publisher rose by 5.7% to 475.75p this morning.
